EFTA00806407.pdf

BERDON ACCOUNTANTS AND ADVISORS - Next Management, LLC 15 Watts Street 6th Floor New York, NY 10013 Dear Client, Enclosed are the following partnership returns prepared on behalf of Next Management, LLC for the year ended December 31, 2015. 2015 U.S. Return of Partnership Income 2015 IRS e-file Signature Authorization for Form 1065 2015 California LLC Return of Income 2015 California E-File Return Authorization for LLC's 2015 Florida Partnership Information Return 2015 State of New York Partnership Return 2015 New York State E-File Signature Authorization for IT-204 2015 New York City UBT Return for Partnerships 2015 Signature Authorization for E-filed UBT Return 2016 New York City Estimated Unincorporated Business Tax The original of each of the above mentioned returns should be dated and signed in accordance with the filing instructions included with the copy of the return. This copy is for your use and should be retained for your files. These return(s) were prepared from information provided by you or your representative. The preparation of tax returns does not include the independent verification of information used. Therefore, we recommend you review the return(s) before signing to ensure there are no omissions or misstatements. If you note anything which may require a change to the return(s), please contact us before filing them. Please return your signed electronic filing authorizations to us either by faxing to Berdon at 212-699-8832 or by uploading to your Berdon portal. If you have any questions in this regard, contact your tax advisor. We appreciate this opportunity to serve you. Please contact us if you have any questions or if we may be of further assistance. Sincerely, Berdon LLP Certified Public Accountants Enclosure(s) Berdon LLP • CPAs and Advisors 360 Madison Avenue. New York. NY 10017. 212.832.04001 One Jericho Plaza. Jericho. NY 11753 .516.931.3100j www.8EFtDONLLP.com XL460 2.000 EFTA00806407  Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form 8879-PE 2015 IRS e-file Signature Authorization for Form 1065 for the year ended December 31. 2015 The original form should be signed (using full name and title) and dated by an authorized general partner or limited liability company member manager of the partnership. The signed form should be returned on or before September 15, 2016: Berdon LLP Certified Public Accountants 360 Madison Ave New York. NY 10017 Or fax to: 212.699.8832 Attn: Tax Control Or email to: [email protected] DO NOT separately file a paper Form 1065 with the Internal Revenue Service. Doing so will delay the processing of your return. We must receive your signed form before we can electronically transmit your return. The Internal Revenue Service will notify us when your return is accepted. Please note that the IRS does not consider your return as filed until they confirm acceptance of the return. EFTA00806408 Form 8879-PE IRS e-file Signature Authorization for Form 1065 O148 No. 1545-0123 ► Do not send to the IRS. Keep for your records. Department of the Treasury ► Information about Form 8879-PE and its instructions is at wwwirs.govilom78879pe. 2015 Internal Revenue Service Fiat calendar year 2015. a lax year beginning 201'.. are ma. 20 Name of partnership Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Part I Return Information (Whole dollars only) 1 Gross receipts or sales less returns and allowances (Form 1065. line 1c) 1 20,059,894. 2 Gross profit (Form 1065, line 3) 2 20,059,894. 3 Ordinary business income (loss) (Form 1065, line 22) 3 2,415,902. 4 Net rental real estate income (loss) (Form 1065, Schedule K, ine 2) 4 5 Other net rental income (loss) (Form 1065, Schedule K, line 3c) 5 Part II Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return) Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership's 2015 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership's electronic return of partnership income. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership's return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership's electronic return of partnership income. General Partner or Limited Liability Company Member Manager's PIN: check one box only I authorize BERDON LLP to enter my PIN 2 6 6 8 9 as my signature EROIrm name do not enter all zeros on the partnership's 2015 electronically filed return of partnership income. As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership's 2015 electronically filed return of partnership income. General partner or limited liability company member manager's signature ► Title ►PRES OF MEMBER—MGR Date ► Part III Certification and Authentication ERO's EFIN PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. 21 6 3 7 7 4- 11 3 0 4. do not enter all zeros I certify that the above numeric entry is my PIN, which is my signature on the 2015 electronically filed return of partnership income for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-iiie Providers tor Business Retums. EROs signature ► Date ► ERO Must Retain This Form - See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice. see instructions. Form 8879-PE (nisi JS.A SPAM? 1.000 R66297 1608 5 EFTA00806409  F., 1065 U.S. Return of Partnership Income OMB No. 1545.0123 Department of the Treasury internal Revenue Service A Principal business actiaty For calendar year 2015. or tax year beginning 2015, ending 20 b Information about Form 1065 and its separate instructions is at www.lre.gov/form1065. Name of partnershp 2015 oemplayoridemiscationmmbef 13-3495607 MODEL AGENCY NEXT MANAGEMENT, LLC E Date business stated BPMcipalswahmorsoMm Type Number. street. and room or suite no. II a P.O. box. see the instructions. MODELING or 15 WATTS STREET 01/04/1989 AGENCY Print 6TH FLOOR F Total assets (see the instructions) C Business code number City or town, state or province. country, and ZIP or breign postal code 812990 NEW YORK, NY 10013 16,760.866. G Check applicable boxes: (1) Initial return (2) ❑ Final return (3) El Name change (4) 0 Address change (5) 0 Amended return (6) Technical termination - also check (1) or (2)_ Check accounting method: 1) Cash (2) E Accrual (3) U Other (specify) b. Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year Itr. 3 Check if Schedules C and M-3 are attached Caution. Include arty trade or business income and expenses on lines la through 22 below. See the instructions for more information. la Gross receipts or sates Ia 20,059,894. b Returns and allowances lb c Balance. Subtract line lb from line la lc 20,059,894. 2 Cost of goods sold (attach Form 1125•A) 2 3 Gross profit. Subtract line 2 from line lc 3 20,059,894. . 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statemenDSTMT. 1 4 248,456. E 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 5 2 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6 — 7 Other income (loss) (attach statement) SEE. STATEMENT 1.. . 7 -234,496. 8 Total Income (loss). Combine lines 3 through 7 8 20,073,854. Deductions (see the Insbuctoes tor Imitations) 9 Salaries arid wages (other than to partners) (less employment credits) 9 11,291,732. 10 Guaranteed payments to partners 10 11 Repairs and maintenance 11 414,619. 12 Bad debts 12 8,131. 13 Rent 13 749,810. 14 Taxes and licenses SEE. STATEMENT J 74 769,540. 15 Interest 15 16a Depreciation (if required, attach Form 4562) 16a 120,998 b Less depreciation reported on Form 1125-A and elsewhere on return 16b I 16c 120,998. 17 Depletion (Do not deduct oil and gas depletion.) 17 18 Retirement plans, etc 18 106,026. 19 Employee benefit programs 19 338,804. 20 Other deductions (attach statement) SEE. STATEMENT J.. . 20 3,858,292. 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . 21 1 7 , 657, 952 . 22 Ordinary business income (loss). Subtract line 21 from line 8 22 2,415.902. Under penalties of penury. I declare that I have examined this return. incbding accompanying schedules and statem nts. and to the best of my knowledge and belief. it is true. correct. and complete. Declaration olpreparet (other than general partner or lasted liability company member manager) is based on as information of which preparer has any knowledge. Sign May the IRS &muss this mum with th PRES or MEMBER-MGR praparor silo= bolos (see Here FAITH KATES .nstrucbonsi? gil • Yes ❑ Signature of general partner or kneed liability company member manager Date Print/Type preparers name Preparees signature Date PUN Paid CheckU it MARC YATKOWSKY sell-employed 200002675 Preparer Firm's name le. BERDON LLP FlreYsEINK 3 — 0485070 Use Only • Fires address Ili. 360 MADISON AVE Phone no. NEW YORK, NY 10017 212-832-0400 For Paperwork Reduction Act Notice, see separate instructions. Form 1065 (2015) SSA 6P1010 2.000 R66297 1608 7 EFTA00806410  Electronic Return Acknowledgement Tax Year : 2015 Return No: R66297 Taxpayer: NEXT MANAGEMENT, LLC ID No : 13-3495607 Return Identification Number : 4/18/2016 10:38:00 A Return Type : 7004 Filing Type Description : FEDERAL EXTENSION Tax Period End Date : 12/31/2015 Electronic Postmark : 4/18/2016 10:38:00 A Return Status : ACCEPTED Status Date : 04/18/2016 ELECTRONIC POSTMARK: THIS IS THE TRANSMISSION DATE AND TIHESTAXP AS PER CENTRAL TIME. SX9000 1.000 R66297 1608 08/16/2016 10:42:01 V EFTA00806411 Form 1065 (2015) NEXT MANAGEMENT. LLC 13-3495607 Page 2 Schedule B Other Information 1 What type of entity is filing this return? Check the a licable box: Yes No a Domestic general partnership b Domestic limited partnership c X Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f Other ► 2 At any time during the tax year, was any partner in he partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corpo ation, an estate (other than an estate of a deceased partner), or a nominee or similar person? X 3 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax- exempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership X b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership X 4 At the end of the tax year, did the partnership: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all dasses of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete () through (iv) below X (I) Name of caporation (II) Employer Identification (III) Country of Qv) Percentage Number (If any) Incorporation Owned in Voting Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the p ofit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If "Yes," complete () through (v) below . . . X 0i) Employer all) Type of (Iv) Country of (v) Maximum (I) Named Entity Identification Entity Organization Percentage Owned in Number (if any) Prate. Loss. or Capital TWO TWELVE MANAGEMENT LLC 20-1354409 PARTNERSHI US 80.000 Yes No 5 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details X 6 Does the partnership satisfy all four of the following conditions? a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule 11-3 X If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or hem Lon Schedule K-1. 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? X 8 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? X 9 Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? X 10 At any time during calendar year 2015, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for FInCEN Form 114, Report of Foreign Bank and Financial Accounts MAR If -Yes ' enter the name of the foreign country. ► UK X JSa Fan, 1065 2015, 5P1020 2.000 R66297 1608 8 EFTA00806412  NEXT MANAGEMENT, LLC 13-3495607 Form 1065 (2015) Page 3 Schedule B Other Information conbnued Yes No 11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If -Yes; the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions X 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election'? X See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes." attach a statement showing the computation and allocation of the basis adjustment. See instructions X c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If 'Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions X 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than disregarded entities wholly owned by the partnership throughout the tax year) Ito ni 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? X 15 If the partnership is required to file Fonn 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions lo. 16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.b. X 17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. li- 18a Did you make any payments in 2015 that would require you to file Form(s) 1099? See instructions X b If "Yes," did you or will you file required Form(s) 1099? X 19 Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return. Iii. 20 Enter the number of partners that are foreign governments under section 892. Iii. Designation of Tax Matters Partner (see instructions) Enter below the general partner or member-manager designated as the tax matters partner (IMP) lot the tax year of this return: Named PARTNERSHIP HOLDING CORP. designated Identifying TMP C/O NEXT MANAGEMENT LLC number of IMP 13—3501977 If the IMP is an enti . name Phone number of Tty MP representative FAITH KATES of TMP Address d k 15 WATTS STREET designated 6TH FLOOR NEW YORK, NY 10013 IMP r Form 1065 (2015) 35* SP1035 2.000 R66297 1 608 9 EFTA00806413 Form 1065 (2015) NEXT MANAGEMENT, LLC 13-349 6 7 Fa0e4 Schedule K Partners' Distributive Share hems Total amount 1 Ordinary business income (loss) (page 1, line 22) 1 2, 415, 902 . 2 Net rental real estate income (loss) (attach Form 8825) 2 3a Other gross rental income (loss) 3a b Expenses from other rental activities (attach statement) . , . , 3b c Other net rental income (loss). Subtract line 3b from line 3a 3c 4 Guaranteed payments 4 Income (Loss) 5 Interest income SEE. STATEMENT 2 . . 5 17, 910. 6 Dividends: a Ordinary dividends 6a b Oualified dividends 16b I 7 Royalties 7 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) 8 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065 ) 9a b Collectibles (28%) gain (loss) 9b I c Unrecaptured section 1250 gain (attach statement) 9c 10 Net section 1231 gain (loss) (attach Form 4797) 10 11 Other income (loss) (see instructions) Time,. 11 12 Section 179 deduction (attach Form 4562) SEE. STATEMENT Z 12 191,194. Deductions 13a Contributions SEE. STATEMENT 3. 13a 103,335. b Investment interest expense 13b c Section 59(e)(2) expenditures: (1) Type N. (2) Amount Iiii• 1_3O2) d Other deductions (see instructions) Type Iii 13d it 14a Net earnings (loss) from self-employment 14a ti b Gross farming or fishing income 14b a E c Gross nonfarm income 14c 15a Low-income housing credit (section 42(j)(5)) 1_5a b Low-income housing credit (other) 15b Credits c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) 1_5c d Other rental real estate credits (see instructions) Type IN. t5d e Other rental credits (see instructions) Type lo. U. f Other credits (see instructions) Type 0 15f 16a Name of country or U.S. possession 0. b Gross income from aN sources 16b c Gross income sourced at partner level 16c Foreign Transactions Foreign gross income sourced at partnership level d Passive category 0.. e General category 0. f Other 0.. 16f Deductions allocated and apportioned at partner level g Interest expense 0. h Other 0. 16h Deductions allocated and apportioned at partnership level to foreign source income i Passive category O. j General category 0 k Other 0. 16k I Total foreign taxes (check one): 0. Paid Accrued U 161 m Reduction in taxes available for credit (attach statement) 16m n Other foreign tax information (attach statement) 17a Post-1986 depreciation adjustment SEE. STATEMENT 3 17a —976. Minimum Tax 17b (AMT) Items b Adjusted gain or loss Alternative c Depletion (other than oil and gas) 17c d Oil, gas. and geothermal properties - gross income 17d e Oil, gas, and geothermal properties - deductions 17e f Other AMT items (attach statement) 17f 18a Tax-exempt interest income 18a Other Information b Other tax-exempt income lab c Nondeductible expenses 5gg. STATMW4' 1 18c 118,554. 19a Distributions of cash and marketable securities 19a 3,000,000. b Distributions of other property 19b 20a Investment income 20a 17,910. b Investment expenses 20b c Other items and amounts (attach statement) Form 1065 (2015) JSA SP 1030 2.000 R66297 1608 10 EFTA00806414 Form loss mist NEXT MANAGEMENT, LLC 13-3495607 Pages Analysts of Net Income (Loss) 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 161 1 2,139,283 2 Analysis by (a) Individual (IN) Individual (v Exempt (vi) partner type: (0 Corporate (active) (passive) (Iv) Partnership Organization Nominee/Other a General partners b Limited artners 2.139.283. Balance Sheets per Books Beginning of tax year End of ax year Assets (a) b) (c) (d) 1 Cash 4 577 394 3 532 783 2a Trade notes and accounts receivable 10 526,765 9,290,056. b Less allowance for bad debts 100,000 10 426,765 100,000 9,190,056. 3 Inventories 4 U.S. government obligations 5 Tax-exempt securities 6 Other current assets (attach statement) STMT 4 228,894 176 432 7a Loans to partners (or persons related to partners) b Mortgage and real estate loans 8 Other investments (attach statement) STMT 4 —214 609 83 446 9a Buildings and other depreciable assets 4,116,424 4,123,029. b Less accumulated depreciation 3 577 355 539,069 3 396 487 726 542. 10a Depletable assets b Less accumulated depletion 11 Land (net ol any amortization) 12a Intangible assets (amortizable only) b Less accumulated amortization 13 Other assets (attach statement) STMT 4 2 361 407 3 051 607 14 Total assets 17 918,_920. 16,760 866 Liabilities and Capital 15 Accounts payable 13 449,263 12,182,330 16 Mortgages. notes. bonds payable in less than 1 year 17 Other current liabilities (attach statement) STMT 4 1, 304, 038 1 786 832 18 All nonrecourse loans 19 a Loans from partners (or persons related to partners) b Mortgages. notes. bonds payable s. 1 yew or more 20 Other liabilities (attach statement) STMT 4 1, 314, 035 1 620 133 21 Partners' capital accounts 1,851, 584. 1 171 571 22 Total liabilities and capital 17,918,920. 16,760.866. Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. The partnership may be required to tile Schedule M-3 (see instructions). 1 Net income (loss) per books 6 Income recorded on books this yew not included 2 Income included on Schedule K. lines I. 2.3c on Schedule K. lines I through 11 (itemize): 5. 6a. 7. 8. 9a. 10. and 11. not recorded on a Tax-exempt interest bocks this year (Itemize): 3 Guaranteed payments (other than 7 Deductions included on Schedule K, lines health insurance) 1 through 13d, and 161 not charged 4 Expenses recorded on books this year against book income this year (Itemize): not included on Schedule K. lines 1 a Depreciation $ through 13d. and 16I(Itemize): a Depreciation 8 Add lines 6 and 7 b Travel and entertainment 9 Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5. . 5 Add lines 1 through 4 Schedule M-2 Analysis of Partners' Capital Accounts 1 Balance at beginning ol year 1,851,584. 6 Distributions: a Cash . . STMT. 5. . 3,000,000. 2 Capital contributed: a Cash b Property b Property 7 Other decreases (Itemize): 3 Net income (loss) per books 2,319,987. 4 Other increases (Itemize): 8 Add lines 6 and 7 3,000,000. 5 Add lines 1 through 4 4,171,571. 9 Balance at end of year. Subtract line 8 from line 5 1,171,571. JsA Form 1065 (2015) 5P1035 2.000 R66297 1608 11 EFTA00806415  SCHEDULE C (Form 1065) Additional Information for Schedule M-3 Filers (Rev. December 2014) OMB No. 1646-0123 ► Attach to Form 1065. See separate instructions. Department of the Treasury Interns Revenue Service ► Information about Schedule C (Form 1065) and its instructions is at wwwirs.govilorrn1065. Name of partnershp Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Yes No 1 At any time during the tax year. were there any transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8? 2 Does any amount reported on Schedule M-3. Part II. lines 7 or 8. column (d), reflect allocations to this partnership from another partnership of income, gain, loss, deduction, or credit that are disproportionate to this partnership's share of capital in such partnership or its ratio for sharing other items of such partnership9 3 At any time during the tax year. did the partnership sell, exchange, or transfer any interest in an intangible asset to